SSE/npower merger could ‘lead to higher prices’

The proposed merger between household energy suppliers SSE and npower is feeling the heat from competition regulators.

The Competition and Markets Authority (CMA) said on Thursday it would refer the deal for an in-depth investigation, unless the firms offered remedies to address its concerns that the tie-up could force up bills for some customers.

It gave them until 3 May to offer such measures.

The merger, first announced last November, would see the household supply businesses operated by SSE and npower join forces – reducing the industry’s dominant “big six” firms to a “big five”.

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SSE chief executive, Alistair Phillips-Davies, responded: “We remain confident that the proposed merger will deliver benefits for customers and for the energy market as a whole and that we will be able to demonstrate this to the CMA in due course.

“We look forward to continuing to work constructively with the CMA and other interested parties.”